Money laundering statute updated to include ‘digital currency’

The Texas Senate updated SB 207 by Sen. Lois Kolkhorst (R-Brenham) and Rep. Tan Parker (R-Flower Mound), adding "digital currency" to the existing money laundering statute alongside money orders, stock, and other negotiable instruments that law enforcement monitors.

Criminals are using digital currencies to launder money. These new technologies allow criminals to conduct transactions anonymously while hiding the source of the funds. Most ransomware attacks use cryptocurrencies as the method of payment.

The Texas Penal Code defines “funds” to include many types of exchange but leaves out the emerging use of cryptocurrencies. Adding cryptocurrencies to the definition of funds allows criminal transactions involving cryptocurrencies to be charged as money laundering.

The bill passed the Senate and House on unanimous votes and now heads to the governor’s desk.

Contact Jeff Huffman, Texas Credit Union Association, at 469-385-6488 or jhuffman@txcua.coop for more information.